Investors are watching the outcome of Tuesday’s US midterm elections for signs of how a possible shift in congressional control could affect financial markets, with particular attention on the artificial intelligence boom that has driven much of the recent rally in US equities, Businessday NG reports. The election comes as technology stocks face renewed pressure following a sell-off in AI-related shares, raising concerns that political uncertainty could add to market volatility, while the results could shape expectations for government spending, defence policy and regulation across industries including healthcare, banking and cryptocurrencies. Republicans currently control both chambers of Congress under President Donald Trump, but opinion polls suggest Democrats are well positioned to win the House of Representatives, while control of the Senate remains uncertain; a change in control of either chamber could alter the administration’s ability to advance its economic agenda, increase congressional scrutiny of major technology companies and complicate negotiations over federal spending and taxation. Scott Chronert, US equity strategist at Citigroup, said in a research note that while probabilities increasingly favour a Blue sweep, several tightly contested Senate races leave open some possibility of Republican control of the Senate or a greater than expected Democratic foothold, and that the market response would depend partly on the balance of power, with a Republican hold on the Senate potentially supporting equities while a stronger-than-expected Democratic presence could weigh on investor sentiment. Strategists at UBS Global Wealth Management assigned a 50 percent probability to Democrats taking control of both chambers, a 40 percent chance of Democrats winning the House while Republicans retain